The conundrum of retirement finances continues to vex those planning for a future with little steady income. If you draw out too small an amount each year, you'll have lived more frugally than necessary. If you withdraw too much money, then you may exhaust your funds.
Have you considered securing your retirement future using annuities to make your funds last?
1. Life income option. This annuity option guarantees you income for the rest of your life, regardless of how long you live! In essence, you're guaranteed to never run out of money as long as the company issuing the annuity is in business.
2. Life option with a guaranteed term. With this annuity option, it is guaranteed that your benefits will be paid for at least a certain amount of time, such as 10 or 15 years. Your beneficiary will continue to receive funds for the remainder of the term if you should die before the term ends.
3. Single premium immediate option. You purchase this type of annuity with a single premium payment and start the payout phase immediately. In other words, when you retire, you can withdraw part of your savings and purchase an annuity with one large payment.
4. Return of principal guarantee option. This type of annuity guarantees you or your beneficiary the return of your principal. A truly remarkable option, what this means is that regardless of how much money you paid in to your annuity over time, that principal will absolutely be paid out to either you or your beneficiary.
5. Joint-life option. This annuity is set up to take into account both you and your spouse's life expectancies. Thus, the amount you'll receive will be less than what you receive in the regular life option (see #1). However, if you die, your annuity funds would pass directly to your spouse.
6. Term certain option. This type of annuity enables you to specify the term you want to receive funds. Maybe you want to receive your annuity spread over 15 years or even 30 years. The advantage of selecting a longer period of time or "term" to be paid is that you're stretching your retirement dollars to last longer.
With some forethought and planning, you can set up an annuity to aid you in stretching your retirement dollars throughout your lifetime.